Swiss Banks Face Slow Death As Taxman Chases Assets

Western Europeans may pull as much as 135 billion francs ($139 billion), or 15 percent of their holdings, from Swiss banks, said Herbert Hensle of Cap Gemini SA. Bank Sarasin & Cie. AG reported last week that private clients withdrew 3 billion francs from Swiss locations in the year through June, the good people at Bloonberg tell us.

Switzerland built the world’s biggest offshore wealth center during an era of “black money” that ended when the U.S. sued UBS AG (UBSN) three years ago. Many of the highest fee-generating European and American customers are withdrawing funds as the hunt for tax evaders widens. As many as 100 Swiss banks will vanish, according to Vontobel Holding AG Chief Executive Officer Zeno Staub.

“It will not be a big bang, but an erosion as amnesty programs are put together and as clients declare themselves and come clean,” said Francois Reyl, chief executive officer of Geneva-based Reyl Group, which manages 5.5 billion francs of assets. “Those banks which don’t adapt will die a slow death…..”

‘Nuff Said?  Check out http://www.bloomberg.com/news/2012-08-05/swiss-banks-face-slow-death-as-taxman-chases-undeclared-assets.html